Major Gulf markets fall on Mideast war, interest rate worries | Reuters

Major Gulf markets fall on Mideast war, interest rate worries | Reuters

Major Gulf stock markets fell in early trade on Thursday as the Middle East conflict continued to weigh on sentiment, while fears that U.S. interest rates will stay high added to the angst.

Israel bombarded the Gaza Strip as it prepared for a ground invasion it says is aimed at annihilating the Palestinian militant group Hamas as Russia warned the conflict could spread beyond the Middle East.

At least 6,546 Palestinians, including 2,704 children were killed, and 17,439 wounded in Israeli strikes since Oct. 7, the health ministry in Hamas-controlled Gaza said on Wednesday.

Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hurt by a 0.5% fall in Saudi Aramco (2222.SE) and a 2.6% decline in Saudi Arabian Mining Co (Ma'aden) (1211.SE).

Ma'aden is working to extract lithium from seawater, CEO Robert Wilt said on Wednesday, as competition for the rare metal rages between the U.S. and China.

Meanwhile, Arabian Contracting Services (4071.SE) advanced more than 5% after signing a 10-year contract to establish, operate and maintain outdoor advertising billboards.

Dubai's main share index (.DFMGI) slid 1.1%, weighed down by a 3% decline in top lender Emirates NBD (ENBD.DU).

The bank reported a higher third-quarter net profit, but forecast a sequential decrease in earnings.

In Abu Dhabi, the index (.FTFADGI) lost 0.6%.

Yields on longer-dated U.S. Treasury notes rose and the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world's largest economy.

The Qatari benchmark (.QSI) fell 0.4%, with Qatar National Bank (QNBK.QA), the Gulf's biggest lender, losing 1.1%.

Mannai Corporation (MCCS.QA), which is not part of the index, fell as much as 7.6% after reporting a steep decline in nine-month net profit.